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LONDON: The Bank of England cut interest rates for the first time since 2009 on Thursday and said it would buy 60 billion pounds of government debt to ease the blow from Britain's June 23 vote to leave the European Union. The central bank said it expected the economy to stagnate for the rest of 2016 and suffer weak growth throughout next year, and lowered its main lending rate to a record-low 0.25 per cent from 0.5 per cent, in line with market expectations.

Jon Hilsenrath of the Wall Street Journal reported last week that Federal Reserve officials are evaluating the possibility of a measure that the journal describes as "sterilized" quantitative easing. How would this work, and what would it be intended to accomplish?
From the Wall Street Journal:

QE Has Failed to Spark Inflation Quantitative easing (QE) was supposed to stimulate the economy and pull us out of deflation. But the third round of quantitative easing (“QE3″) in the U.S. failed to raise inflation expectations.

The Fed is officially holding policy steady, but it looks like they have been tightening to me, even though interest rates have not risen. In this post I'll offer a short explanation of "quantitative easing" and its opposite, quantitative tightening. Then I'll offer the evidence that they have been tightening. Finally, I'll tell these very smart people how to do their job (while trying to retain a small shred of humility).What is Quantitative Easing?